1. Agriculture and the environment Economics of Food Markets Lecture 19 Alan Matthews

2. Key issues Identify the key linkages between agriculture and the environment Identify agri-environment indicators used in monitoring the environmental performance of agriculture Evolution of EU and Irish agri- environmental policies

3. Reading Good overviews in Latacz-Lohmann and Hodge, 2003, Commission 2005, IEEP 2002 See Dwyer (2007) for review of performance Series of edited volumes by Whitby (1996), Brouwer and van Berkum (1996), Brouwer and Lowe (2000), Brouwer and van Straaten (2002), Brouwer and Erwin (2002) Web sites of DG Agri, European Environment Agency, European Environmental Bureau and Institute for European Environmental Policy

4. Agriculture-environment linkages Soil quality (sustainability concerns) Water quality and quantity (pollution concerns) Air quality (pollution concerns) Biodiversity (conservation concerns) Landscape (amenity concerns) Food safety and animal welfare concerns

5. Agri-environment indicators Follow the OECD Drivers-State-Response (DSR) model Drivers –Nutrient use, pesticide use, animal numbers State indicators –Water quality, GHG emissions, species numbers Response –Indicators of government expenditure or participation in agri-environment schemes

6. Source: EEA Europe’s Environment: The Fourth Assessment SEE South East Europe EECCA East Europe and Central Asia

7. Source: EEA Europe’s Environment: The Fourth Assessment SEE South East Europe EECCA East Europe and Central Asia

8. Source: EEA Europe’s Environment: The Fourth Assessment SEE South East Europe EECCA East Europe and Central Asia

9. Source: Birdlife International, New Challenges, New CAP 2007

13. Breakdown of emissions by sector Source: Report of the Consultation Group on Greenhouse Gas Emissions Trading, 2000, Department of the Environment and Local Government

14. Integrating environmental concerns into EU agricultural policy Background is growing importance of sustainable growth culminating in the Göteborg Council commitment to SSD in 20010 Traditional CAP policies exacerbated negative effects for the environment Integration took three forms –Incorporating environmental considerations into the commodity market regimes (Pillar 1) –Specific agri-environment schemes (Pillar 2) –Compliance with general environmental regulations

15. Environmental considerations in Pillar 1 Setaside in the arable crops regime Extensification and stocking density restrictions in the beef/veal regime Cross-compliance Decoupling of direct payments…..but rising food prices may again increase incentives for more intensive land use

16. Agri-environment schemes in Pillar 2 Less Favoured Areas directive introduced in 1975 to support farming in marginal areas Agri environment payments first permitted as a voluntary measure for MS in the 1985 agric structures regulation Introduced as an accompanying measure in the MacSharry CAP reform A compulsory axis in the 2007-13 Rural Development Regulation

17. EU environmental regulations Biodiversity – Natura 2000, Birds Directive and Habitats Directive Water pollution – Nitrates Directive Water management – Water Framework Directive Climate change – support for energy crops Biotechnology – regulating GMOs